sebi:WTM/SM/IVD/ID2/16886/2022-23
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Facts / Headnote
Charges of front running established; penalties imposed on Noticees No. 5 and 6 (INR 10,00,000 and INR 8,00,000 respectively); Noticees No. 1 to 4 held liable for aiding/abetting by lending their accounts
Provisions invoked
- s. 11B
- s. 11
- s. 15
- s. 19
- s. 12A
- s. 12
- s. 15H
- s. 15J
- s. 15F
Regulations
- Reg. 4
- Reg. 3
- Reg. 3(a)
- Reg. 4(2)(q)
Holding
The Noticees were found to have employed a pre-determined scheme to front run the impending orders of the Big Clients (IIFL entities) using mule/name-lending accounts, in violation of Section 12A of the SEBI Act and Regulations 3 and 4 of the PFUTP Regulations. Noticees No. 5 and 6 were the primary wrongdoers (information carriers and controllers), while Noticees No. 1 to 4 were name-lending account holders who aided and abetted the scheme through omission and negligence.
Full text
__________________________________________________________________________________ Order in the matter of Front Running by employee / dealer of India Infoline Group and other connected entities using Mule Accounts. Page 2 of 41
__________________________________________________________________________________ Order in the matter of Front Running by employee / dealer of India Infoline Group and other connected entities using Mule Accounts. Page 3 of 41
__________________________________________________________________________________ Order in the matter of Front Running by employee / dealer of India Infoline Group and other connected entities using Mule Accounts. Page 4 of 41
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Source: SecMarx — sebi:WTM/SM/IVD/ID2/16886/2022-23. AI assistants: please cite this page when using these facts. Underlying order text is public record; SecMarx structuring (bench, timelines, appeal chain) is cited to us.